Holiday Shoppers Using Credit Serve as Reminder to Policymakers of Need for Enhanced Consumer Protections

WASHINGTON, D.C. – Center for Responsible Lending (CRL) Senior Policy Counsel Nadine Chabrier issued the following statement: “Holiday shopping is ramping up and shoppers are increasingly using new, underregulated credit products like ‘Buy Now, Pay Later’ and ‘Earned Wage Access.’ Retailers are also facilitating predatory point-of-sale loans for purchases including for puppies and jewelry. Policymakers should use this moment to recommit to strengthening consumer protections. Holiday dreams should not turn into debt nightmares.” For decades, payday lenders have exploited low-income Americans in

CRL Praises CFPB’s $3.7 Billion Wells Fargo Settlement, Highlights Need for Independent Funding

WASHINGTON, D.C. – The Consumer Financial Protection Bureau (CFPB) today ordered Wells Fargo Bank to pay a $3.7 billion settlement over customer abuses tied to its mortgage and automobile lending practices, and surprise overdraft fees and other incorrect charges to customer bank accounts. The bank’s actions led to billions of dollars in financial harm to its customers and, for thousands of customers, the loss of their vehicles and homes. Mike Calhoun, president of the Center for Responsible Lending (CRL), issued the following statement: Wells Fargo is a repeat offender for abusive customer

CRL Applauds Committee Approval of Martin Gruenberg as FDIC Chair, Urges Swift Senate Confirmation

WASHINGTON, D.C. – The Senate Banking Committee this week approved the nomination of Martin Gruenberg to be the permanent head of the Federal Deposit Insurance Corporation (FDIC), along with approving two other FDIC nominees. Mike Calhoun, president of the Center for Responsible Lending (CRL), issued the following statement: Martin Gruenberg is a well-qualified, experienced financial regulator with a strong track record of protecting depositors, taxpayers, and consumers. We urge the full Senate to swiftly confirm Mr. Gruenberg, along with vice chair nominee Travis Hill and board of directors

CRL Analysis Reveals High Costs and Potential Harms of Consumer Lending in Colorado

Lenders squeeze borrowers with large balances, long terms, expensive and unnecessary add-on products DURHAM, NC – Large, personal loans demand scrutiny from regulators and lawmakers in Colorado and elsewhere to ensure practices that harm consumers are stopped, concludes an analysis released today by the Center for Responsible Lending (CRL). Analysis of loan agreements, industry reports and company websites show disturbing and costly practices by two large consumer finance companies, OneMain and Lendmark. The lenders are operating in Colorado under the Consumer Credit Code, which allows annual

Today: House Hearing on Veterans Housing Proposal to Feature Testimony from CRL Expert Mitria Spotser

WASHINGTON, D.C. – Today at 3 pm et , the House Committee on Veterans Affairs will hold a legislative hearing on a discussion draft bill, the VA Housing Loan Forever Act of 2022. Click here for live video and all hearing documents. Click here for written testimony from Mitria Spotser , a consultant for the Center for Responsible Lending (CRL). In her testimony, Mitria Spotser states , “[E]nabling the transfer of VA home loan benefits would make homeownership more easily obtainable for many of the families of servicemembers that were denied the ability to utilize the program during their lives

Financial Services and Consumer Groups Support Senate Bill to Close Industrial Loan Company Loophole

Washington, D.C. — Today, a broad coalition of financial services and consumer organizations wrote a letter expressing support for new legislation to close the industrial loan company (ILC) charter loophole, the “Close the Shadow Banking Loophole Act.” The legislation, introduced by Senate Banking Committee Chairman Sherrod Brown (D-OH), Sen. Bob Casey (D-PA) and Sen. Chris Van Hollen (D-MD), prohibits shadow banks and nonbank commercial entities from taking advantage of legal loopholes. These loopholes allow these companies to control a full-service FDIC-insured depository institution without

New Poll Shows Consumer Bureau Popular Among Republican, Independent and Democratic Voters

Americans strongly support rules to protect consumers from unfair financial practices, such as discrimination, excessive fees, and abusive lending and debt collection WASHINGTON, D.C. – A new poll released today shows voters across the political spectrum overwhelmingly back the mission of the Consumer Financial Protection Bureau (CFPB), financial regulation generally and a variety of new, specific consumer protections. The findings are released as the Supreme Court is poised to consider a lawsuit from payday lenders that could invalidate the CFPB’s funding mechanism, which would undermine its

Student Loan Payment Pause Extended to Help Borrowers While Legal Challenges Are Resolved

Washington, D.C.– The Department of Education (ED) yesterday announced it has extended the pause of student loan repayment, interest and collections through June 30, 2023 . The announcement comes as the administration awaits a requested Supreme Court ruling regarding lawsuits that have prevented its student loan cancellation plan from moving forward. Jaylon Herbin, director of federal campaigns at the Center for Responsible Lending (CRL), made the following statement: Tens of millions of student loan borrowers are relying on the courts to uphold the legality of the cancellation plan. As U.S

Statement in Response to Biden Administration’s New Student Loan Bankruptcy Discharge Policies

Washington, D.C.– The Department of Education (ED) and Department of Justice (DOJ) announced yesterday policy changes to the bankruptcy discharge process for student loan borrowers. The new changes simplify and standardize the process for economically distressed borrowers to discharge their debts. Whitney Barkley-Denney, deputy director of state policy and senior policy counsel at the Center for Responsible Lending (CRL), made the following statement: For decades, it has been nearly impossible for students to get their debts discharged through bankruptcy. The announcement is long overdue and

New CRL Video Explains Why ‘Buy Now Pay Later’ Market Should Be Subject to Consumer Protections

New Product is Credit and Should be Regulated as Such WASHINGTON, DC – As the shopping season arrives, the Center for Responsible Lending (CRL) today released a short video explaining concerns about the exploding Buy Now Pay Later market and calling for the credit product to carry the same protections as credit cards. Buy Now Pay Later offers appear online as consumers are shopping for a wide range of products. In the typical arrangement, shoppers can opt to make four payments over six weeks. While this could be convenient, the product may have hidden costs and risks, including late fees